CHICAGO –  Minnesota’s economic forecast brightened a bit Thursday with new revenue projections adding $295 million to its surplus this year and chopping $463 million off the state’s projected $1.1 billion deficit for its next two-year budget.

The new forecast projects that the state will close the books on the current fiscal year June 30 with a positive balance of $295 million. Under state law, most will go to further pay off school aid delayed to help close the fiscal 2012-2013 budget deficit. The state will still owe about $800 million to districts and does not expect to make good on those payments until fiscal 2016-2017.

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